The Tax Cut and Jobs Act attempt to simplify many areas of corporate tax law. Still, it is a major overhaul of the corporate tax laws and takes an expert to apply. Here at the Law Offices of Howard L. Schwartz we are tax lawyers with accountant backgrounds and assist clients with their corporate tax planning needs and with tax returns. We also can prepare individual returns to use synergies to ensure you receive the most advantageous tax benefits.
A corporate tax is a levy placed on the profit of a firm to raise taxes. After operating earnings are calculated by deducting expenses, including the cost of goods sold and deprecation from revenues, enacted tax rates are applied to generate a legal obligation the business owes the government.
The new Tax Law of 2019 contained the corporate tax cut. This law lowered the corporate tax rate from 35 to 20 percent. This was intended to encourage companies to invest in their businesses. This means that corporations now have a lot of extra cash from these tax cuts, we are now waiting to see how they continue to spend this money in 2019.